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answering dept id	63
min answer › question first answered	2014-10-29T16:15:22.2220144Z
answer › attachment › title	CRA Report on the Capacity Market Gaming Risks
max answer › date of answer	2014-10-30
max answer › question first answered	2014-10-30T16:48:27.6534581Z

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100657

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23/10/2014

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Department for Energy and Climate Change

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Energy and Climate Change

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Energy and Climate Change

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Electricity Generation

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25277

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To ask Her Majesty’s Government, in the rules governing capacity market auctions, what measures have been included to guard against undue market dominance by any of the companies bidding in the capacity market mechanism; and whether OFGEM has a role in overseeing fair competition in the mechanism.

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Baroness Worthington

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HL2388

answer

is ministerial correction

date of answer

30/10/2014

answer text

The Capacity Market has been designed to mitigate the risks of gaming. We commissioned expert external advice from Charles River Associates on this issue and implemented the recommendations contained within that report which is available on the DECC website:<a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252746/CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf" target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252746/CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf</a>.Anti-gaming measures include having in place an auction monitor who will ensure that the rules are properly followed by all participants during the auction. If the auction monitor were to find any irregularities, the Secretary of State ultimately has the ability to annul the auction after it has taken place.Ofgem has the power to investigate any company bidding into the auction should they consider this necessary.

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Baroness Verma

question first answered

30/10/2014 16:48:27

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3790

label	Biography information for Baroness Verma

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1

file name	CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf
title	CRA Report on the Capacity Market Gaming Risks

tabling member

4235

label	Biography information for Baroness Worthington